Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/15411

TitleVoluntary risk reporting to enhance institutional and organizational legitimacy : evidence from Portuguese banks
Author(s)Oliveira, Jonas
Rodrigues, Lúcia Lima
Craig, Russell
KeywordsDisclosure
Risk
Voluntary
Legitimacy
Reputation
Stakeholders
Financial risk
Portugal
Issue date2011
PublisherEmerald Group Publishing Limited
JournalJournal of Financial Regulation and Compliance
Abstract(s)Purpose: This paper explores the factors that affected the voluntary risk-related disclosures in the individual annual reports for 2006 of Portuguese banks. We also explore the extent to which in those reports conformed to Basel II requirements in terms of the voluntary disclosure of operational risk and capital structure and adequacy matters. Design/methodology/approach: We conduct a content analysis of the annual reports of a sample of 111 banks. Voluntary operational risk and capital structure and adequacy disclosures were assessed using a list of disclosure categories that were developed from the Third Pillar disclosure requirements of the Basel II Accord. Findings: Stakeholder monitoring and corporation reputation are crucial factors that explain the risk reporting practices observed. Voluntary risk reporting appears to enhance legitimacy for two major reasons: first, by fulfilling institutional pressures to assure the effectiveness of market discipline; and second, by managing stakeholder perception of a corporation’s reputation. Originality/values: The voluntary risk-related disclosures observed are shown to be explained by legitimacy theory and resources-based perspectives. This theoretical framework has not been tested hitherto in explaining the motives for banks to make voluntary RRD.
TypeArticle
URIhttp://hdl.handle.net/1822/15411
DOI10.1108/13581981111147892
ISSN1358-1988
Publisher versionThe original publication is available at www.emeraldinsight.com
Peer-Reviewedyes
AccessRestricted access (UMinho)
Appears in Collections:iMARKE - Publicações em Revistas Internacionais (com revisão por pares) / Articles in International Journals (peer review)

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